With the next wave of cannabis legalization looming, the business of pot is once again the business of mergers and acquisitions. If the last phase was all about production and distribution, this phase may be dominated by technology, according to a story posted on cbc.ca.
Specifically, vape pens.
They’re among a series of new products, including edibles, beverages and extracts, that will be for sale legally in Canada in mid-December.
Which explains why Canadian cannabis company Auxly Cannabis Group Inc. has teamed up with British tobacco giant Imperial Brands in a deal worth more than $120 million. Imperial gets a foothold in the cannabis market and Auxly gets exclusive access to Imperial’s vape IP, technology and research.
The partnership “accelerates Auxly’s plan to go heavily into the recreational market,” said Auxly CEO Chuck Rifici. “Particularly, the vape category, which we think will be very large.”
In fact, analysts say vaping could become the driving force of the recreational cannabis market.
Chris Damas, editor of the BCMI Cannabis Report says of all the new products coming on line, from vape products to edibles and everything in between, vape pens will make up half of all derivative sales.